“Fund” is the best verb used in the home loan process.  To fund the loan,  is the process of wiring or releasing money from a mortgage lender to title or escrow prior to closing a real estate transaction  and often occurs a day or two before closing.

The Funding Process

The process of funding a loan differs from state to state, but it typically doesn’t take place until  all the funding conditions have been satisfied. A home-buyer will sign ​loan documents a few days before the actual closing takes place in California, but closing typically takes place the same day a buyer signs the loan documents on the East Coast, for example.

What Does it Take to Fund a Loan?

Part of the funding process begins a few days prior, with the requirement a closing disclosure be sent to the buyer, before final loan documents can be prepared for signatures.  Once the appropriate time has passed, the buyer is then permitted to sign the mortgage documents, finalizing the purchase of their home.

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After all the loan documents and escrow paperwork have been completely signed by all parties, the loan documents are returned to the lender for review. Underwriting will require and confirm all loan conditions are satisfied at this time, as well.

The lender will then prepare to fund the loan after it reviews the executed final loan documents. This is the time the lender wires all the funds required to close, to the title or escrow company.

When the wire is received by the closing agent, the file is in a position to record, and YOU  are the official new homeowner!